Does Bitop aim to profit from client losses?

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2021-06-01 00:00:00

Bitop will not make money from customer losses!

As we all know, the road to successful trading is by no means easy, and the future may be long. Many traders in the market may lose money. However, we will not profit from the losses of losing traders.

In most cases, positions between our clients will offset each other. For example, client A buys a bitcoin contract, and client B sells a bitcoin contract, covering two trading directions. This This means that Bitop will not face risks due to the profit or loss of both customers. Sometimes, if most of the customers in a certain market are trading in the same direction, at this time, in order to protect our own risk exposure, we will be in the target market Hedging. For example, if client A and client B are both bearish on Bitcoin, we may buy actual Bitcoin futures to cover the corresponding amount that we should pay when these two clients make a profit.

However, in some cases, the futures market price trend may not be exactly the same as the price trend of Bitop's products (spot market price), so that the external hedging strategy chosen by Bitop may not be fully effective. Therefore, Bitop will The daily fee income will be retained in a fixed proportion, and a risk reserve will be established to ensure that users’ profits can be realized forever.

In some special and rare extreme market conditions, Bitop may choose to suspend new open positions in a single direction in order to ensure the platform's risk exposure and risk reserves to ensure that customers realize profits. Lowering the mouth to a safe range. This is to protect profitable customers of the platform to always realize their corresponding profits after closing their positions, and to protect the investment income of customers.